Financial Resources and Global Lending Answers

Responses may vary but should include some or all of the following information: The purpose and goals behind global lending are to eliminate poverty and reduce monetary problems that interfere with world trade. Global lenders do this in a variety of ways. They track global performance trends, alert members to potential crisis situations, provide loans and project guidance for struggling economies, and target ways to eliminate poverty. One criticism of the global lending process is that the process may hurt countries more than it helps them. Opponents argue that loan terms are unreasonable and actually keep borrowing countries in debt. Some say that these loans infringe on nations' autonomy, as lenders dictate terms. Others argue that project and analysis efforts are wasted because poverty has not been eliminated. Lending may be too little and too late to avert a crisis.

Responses may vary but should include some or all of the following information: NGOs are also referred to as civil society organizations. According to the United Nations, NGOs are independent from government control, unaffiliated with any particular political party, nonprofit, and noncriminal. Over 12,000 NGOs are registered with the UN. There are also tens of thousands unregistered NGOs. Well-known NGOs in the US include the Red Cross, Doctors Without Borders, Oxfam America, Save the Children, and World Vision.

Responses may vary but should include some or all of the following information: The World Bank would be a potential resource for a country in this position. The World Bank’s current mission is to help countries struggling with poverty. This organization might be able to analyze the root causes of poverty and set targets for improvement. In addition, much of the bank’s current work is focused on improving infrastructure, which is perceived as a major obstacle to economic growth and social progress. The World Bank provides loans for development projects that can help reduce poverty. NGOs may be another resource for help with long-term solutions, as they tend to focus on alleviating poverty and improving living conditions in developing countries. Nongovernmental organizations are especially helpful in working to protect environmental assets, empower women, and build local economies. These organizations may provide sources of microcredit or assist in starting programs that foster independence and growth.

Responses may vary but should include some or all of the following information: When a country joins the IMF, it is assigned a quota based on the size of its economy. A quota determines the amount of money each country contributes as well as the number of votes it gets on IMF decisions. Quotas broadly reflect the size of each member's economy: the larger a country's economy in terms of output, and the larger and more variable its trade, the larger its quota. Members with the largest quotas are the United States, Japan, Germany, France, the United Kingdom, China, Italy, Saudi Arabia, Canada, and Russia. The IMF also receives interest on some of the loans it makes.